Facilities and Administration & Fringe Benefits Rates

F&A Rates

These facilities and administration rates (F&A) must be charged for all sponsored programs unless a program or an agency has been granted a legislatively endorsed restriction on the F&A rate that is to be charged or, in the case of private agencies, an established written policy exists which limits F&A rates.

F&A Rates FY2023 

The new rates should be applied to all proposals submitted with deadlines occurring on or after January 1, 2019.

Rate Categories Category Duration Applicable Rate
Organized Research On-Campus 07/01/19 – Until Amended 48.00%
Off-Campus 07/01/17 – Until Amended 26.00%
Instruction On-Campus 07/01/17 – Until Amended 48.80%
Off-Campus 07/01/17 – Until Amended 26.00%
Other Sponsored Activities On-Campus 07/01/17 – Until Amended 30.00%
Off-Campus 07/01/17 – Until Amended 26.00%


Fringe Benefit Rates FY2024

Effective July 1, 2023 – June 30, 2024
Marshall University, Full-time Employees 21.73%
Marshall University, Part-Time Employees 12.70%
Marshall University, Graduate Assistants and Student Workers 0.00%
MURC Full-Time Employees 28.66%
MURC Part-Time Employees 12.95%

PDF File FY2024 Rate Agreement

Fringe Benefit Rates FY2023

Effective July 1, 2022 – June 30, 2023
Marshall University, Full-time Employees 21.38%
Marshall University, Part-Time Employees 17.06%
Marshall University, Graduate Assistants and Student Workers 0.00%
MURC Full-Time Employees 28.07%
MURC Part-Time Employees 16.39%

PDF File FY2023 Rate Agreement

About Facilities & Administrative (F&A) Costs

Facilities and Administrative (F&A) costs (also known as “indirect costs’ or “overhead costs”) are those costs of an institution which are not readily identifiable with a particular project or activity but nevertheless are necessary to the general operation of the institution and the conduct of its activities. The cost of operating and maintaining buildings, grounds and equipment depreciation, general and departmental administrative salaries and expenses, sponsored programs and library costs are types of expenses usually considered as F&A costs.

In theory, all such costs might be charged directly; practical difficulties however preclude such an approach. Therefore, they are usually grouped into common pool(s) and distributed to those institutional activities benefited through a cost allocation process. The end product of this allocation process in an F&A rate(s) which is then applied to individual grant and contract awards to determine the amount of indirect costs chargeable to the award

F&A costs are calculated on what is called a Modified Total Direct Costs (MTDC) base. This base consists of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000.

The U.S. Department of Health and Human Services is Marshall University and Marshall University Research Corporation’s “cognizant agency” for negotiating facilities and administration (F&A) and Fringe Benefit rates to be charged on all sponsored agreements.

NOTE: Effective June 1, 2023 all proposal budgets being submitted for funding with an F&A Rate that is not in accordance with our approved rate agreement are to be calculated on the Total Direct Costs and not the Modified Total Direct Costs unless otherwise specified in the solicitation or RFP.

For example: An agency that limits the F&A to 15% would have the 15% calculated on all costs.